The City gave Simply Be owner N Brown the thumbs down on Tuesday despite a rise in revenues and a strong Christmas.
The online retailer, which owns a clutch of brands including plus-sized Jacamo, said revenues were up 3.2% in the 18 weeks to January, lifted by sales of dresses and knee-high boots over the festive period.
However, a big spend on promotions to attract more shoppers dented margins on its wares. Shares were down 14% to 241.6p. But full-year profits are expected to remain the same, propped up in part by its finance arm, which allows customers to pay for their shopping on credit.
“It’s a smaller part of our revenue,” said chief executive Angela Spindler. The company today said it will sell some of its brands via Zalando, one of Europe’s biggest fashion retailers.
